Tesla short-sellers have experienced much pain and loss over the years. Now, Bloomberg reports that most of them are giving up.
Bloomberg points out that Tesla's shares have risen 39% in 2021 since the low that came in March. This means Tesla bears have had to hurry up and cover their negative positions, which can prove very costly.
Based on the report, according to IHS Markit, the percentage of Tesla stock that's currently borrowed by traders is way down at just 1.1 percent of the total shares available for trading. Bloomberg says this is the lowest level for the shorts since Tesla first went public back in 2010. For those who don't follow financial markets, Tesla has proven to be one of the most shorted stocks of all time.
Bloomberg also makes it clear that S3 Partners, an IHS Markit rival, claims Tesla's short interest is still at around 3.2 percent. Regardless of the discrepancy, the number of borrowed shares is still at a record low for Tesla. S3 Partners adds that over the last month, the number of shorted Tesla shares dropped by 1.55 million shares, or some $1.2 billion.
Tesla just reported record production and deliveries for Q3 2021. While the company's stock price didn't rise substantially on Monday, October 4, 2021, it had notable peaks during a time that most of the rest of the market was struggling. Bloomberg writes:
"Tesla shares rose as much as 4.1% to $806.97 in New York on Monday, before paring most of the gains to close up 0.8% at $781.53. The stock set a record high close of $883.09 in January."
Meanwhile, Wedbush analysts Daniel Ives is even more bullish related to Tesla, as the firm just raised its price target to $1,000. Ives shared:
“While there are many competitors in the EV space, Tesla continues to dominate market share as evidenced again this quarter while battling through the chip shortage."
At the time of writing, Tesla's shares were up over 1.5 percent on the news.